AU SFB posts 15% growth in PAT in Q1FY22

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Mumbai : AU Small Finance Bank reported a 15% growth in its net profit to ₹ 203 Crore for the quarter ended June 30th, despite Bank prudently increasing contingency provisioning buffers by ₹ 120 Crore to strengthen the balance sheet. Delivered RoE of 12.7% and RoA of 1.6% in Q1’FY22. Cost of funds declined by 88bps YoY to reach 6.3%. Deposits continue to scale with customer profile becoming more granular. Total deposits grew by 38% YoY to ₹ 37,014 Crore driven largely by growth in Savings account balances which grew 166% YoY to ₹ 8,102 Crores. CASA ratio improved to 26% versus 23% as on 31-Mar’21 and 14% as on 30-Jun’20. Retail deposits mix at 59%. Total Loan AUM rises 22% YoY to reach ₹ 36,635 Cr. Disbursements were subdued in Q1FY22 due to the 2nd wave impact. The asset quality remained stable with GNPA at 4.3% and Net NPA at 2.3%. Collections saw sharp pullback as Covid wave-2 flattened; Collection efficiency of 114% in June’21 and 101% for Q1’FY22. Bank has done 658 Cr of standard restructuring in Q1 and as on 30th June’21 Bank had total of ₹ 1,265 Cr of Standard Restructured asset which is 3.60% of gross advances.

The bank also launched AU 0101 – digital bank which offers comprehensive solutions around savings and fixed deposits, credit cards, loans, investments, insurance, bill payments, and other lifestyle solutions like cab and flight bookings, recharge, and tax payments with a simple and intuitive interface, best in class onboarding journeys with integrated Video KYC, and personalised pre-approved offers for customers. During the quarter, AU Bank also launched Credit Cards offering to customers with attractive product features including Industry’s first digital device protection plan, and end-to-end digital onboarding.

-Odisha Age